Down payments and private listings, not commissions, remain buyers’ biggest hurdles

Real estate commissions for first-time homebuyers have barely budged since the National Association of Realtors’ (NAR) commission lawsuit settlement, while the rising popularity of pocket listings and worsening affordability are creating new access hurdles, according to survey of housing counselors from the Consumer Federation of America and the National Urban League, released Thursday. 

Authored by Sharon Cornelissen, Katie McCann and Ethan Weiland, the study, titled “Escalating Housing Costs, Hidden Listings,” draws on survey responses from 223 housing counselors across 37 states collected in July and August 2025, roughly a year after the business practice changes outlined in NAR’s settlement took effect. Researchers also conducted nine in-depth interviews with housing counselors, who provide individual guidance to first-time homebuyers and educate consumers in homebuyer classes.

The authors claim that their findings offer an early look at how the landmark settlement and shifting brokerage practices are affecting first-time buyers in an already constrained market.

Commissions largely unchanged despite decoupling

Only 7% of counselors surveyed said their first-time homebuying clients are paying lower real estate commissions than a year earlier. A larger share, 36%, disagreed with the belief that commissions have fallen and 28% were neutral, suggesting commission levels have remained stable or edged higher.

The report notes that this aligns with internal data from Redfin, which shows buyer’s agent commissions largely unchanged since NAR’s new rules rolled out in August 2024.

Counselors identified a lack of fee negotiation as a primary reason. Two-thirds of respondents said their clients “never,” “rarely” or only “sometimes” negotiate agent fees. Just 16% said clients negotiate “often” or “always.” In November 2025, a mystery shopped study published by the Consumer Policy Center found that buyer’s agents “make it very difficult for homebuyers to negotiate lower rates,” which may also contribute to the lack of fee negotiations. 

In interviews conducted by the authors, some respondents reported that buyers who try to negotiate commissions risk being labeled “difficult” by agents, which can limit their ability to find representation in tight local markets. That dynamic, the authors argue, points to persistent cultural and structural resistance to price competition in brokerage services even after the settlement.

Buyers more exposed to fees, but deals rarely die over commissions

The survey results suggest responsibility for paying buyer’s agent fees has shifted, at least partially, toward buyers. Just 26% of counselors said sellers “often” or “always” cover the buyer’s agent commission; 53% reported sellers “never,” “rarely” or only “sometimes” pay it.

Still, 47% of counselors said they “never” or “rarely” see a home purchase fail because buyers cannot afford the buyer’s agent commission and receive no seller help. Only 9% said this happens “often” or “always.”

Counselors also reported stepping in to help clients budget for the additional cost, treat buyer-broker fees as part of savings targets and understand the new rules. The data suggest that, to date, the feared widespread exclusion of first-time or low-wealth buyers purely due to buyer-broker commissions has not materialized at scale.

For lenders and real estate brokerages, this implies that while buyer cash-to-close is under more pressure, commission structure changes are not yet a primary driver of fallout. However, the report notes this is an emerging trend that may warrant continued monitoring as consumer awareness and enforcement evolve.

Affordability and inventory dwarf commission concerns

When asked to rank the top challenges facing first-time buyers in 2025, counselors overwhelmingly cited core affordability and supply issues rather than brokerage access, with 88% responding that “saving up for a down payment” is “difficult” or “very difficult” for clients, 73% citing “finding a house that meets their needs” as a major challenge, 70% pointing to paying out-of-pocket costs, 64% highlighting building up credit scores and 50% saying buyers are being outcompeted by other buyers. 

Counselors told researchers that rising home prices, limited stock that can pass inspection in some markets and shrinking down payment assistance were squeezing clients even when they had strong credit or obtained aid. Debt loads from auto and student loans also frequently kept buyers from qualifying for mortgages.

Pocket listings emerge as a fair housing and access risk

The report highlights the growth of pocket or private listings as an emerging concern for first-time buyers and homebuyers of color.

In the survey, 46% of housing counselors said first-time buyers “sometimes,” “often” or “always” struggle with pocket listings. About 31% said their clients “never” or “rarely” experience issues, and 23% answered “don’t know,” which the authors attribute to the relative newness and opacity of the practice.

Pocket listings can keep a portion of inventory within a single firm or network, allowing brokerages to capture both sides of a transaction and reducing visibility for buyers represented by competing firms or searching independently. A recent analysis by Bright MLS cited in the report found that nearly 8% of new listings in February 2025 in its mid-Atlantic footprint started as office exclusives, up from a historical range of 2% to 4%, with some ZIP codes in the Washington, D.C., metro area exceeding 20%.

The brief flags equity concerns, noting prior research that private listings can reinforce segregation and enable discriminatory steering. The National Association of Hispanic Real Estate Professionals (NAHREP) has warned the industry could be on the “cusp of the worst fair housing crisis since the 1960s” if pocket listings expand unchecked.

Housing counselors’ role grows as rules shift

The report also emphasizes the role of the U.S. Department of Housing and Urban Development (HUD)-certified housing counselors as independent advisors. Counselors, who do not earn commissions or origination revenue, work with dozens or hundreds of clients annually, often from early credit-building stages through closing and, in some cases, post-purchase.

The authors argue that as commission structures and listing practices evolve, counselors are serving as key interpreters of new rules for first-time and low-income buyers, developing curriculum on how to select an agent, negotiate compensation and understand contract terms.

According to the report, the continued and stable funding of housing counselors is a consumer protection and market-functioning issue rather than only a social service.

Policy recommendations for data, oversight and counseling

Looking ahead, the study calls for several policy responses targeted at improving transparency and mitigating emerging risks, including things like Federal Housing Finance Agency (FHFA) mandated collection and public reporting of real estate commission data, the monitoring of pocket listings for disparate impact on buyers of color and the funding, training and recognition of housing counselors by HUD. 

NAR did not immediately return HousingWire’s request for comment on the study.

This article was written by Brooklee Han and generated with the assistance of HousingWire Automation. It was reviewed by a HousingWire editor before publication. The system helps convert company announcements and industry data into HousingWire-style news coverage.